Marmon Holdings Improves Performance with Managed Logistics Program
From developing processes to measure savings to creating a dashboard and reporting tools, Echo Global Logistics helped Marmon Holdings manage shipping in a more centralized way.
The Challenge
Marmon Holdings, Inc. traditionally operates in a decentralized manner, equipping the company’s 100+ businesses with the resources needed to be successful and the autonomy to make their own decisions.
Marmon brings strength, support, stability, and investment to its teams around the world as well as opportunities to drive cost savings and improve service performance when and where it makes sense.
In 2019, Marmon leadership identified transportation procurement as an area where working together could be advantageous.
At the time, the functions across Marmon’s transportation companies operated on their own with different buyers and strategies. Some managed shipping in-house while others used third parties.
“Marmon allowed the businesses to manage logistics independently because each is so different. But, as a company, we knew there were also many big-picture advantages we could gain with more consistency. If we listened and understood the needs of each business, we felt a positive change was possible,” says Jackson Jones, VP of Supply Chain and Procurement.
The team took a multi-faceted approach to the opportunity, and Echo Global Logistics’ consultative approach helped craft the internal processes necessary to manage shipping in a more centralized way. These tactics included creating a comprehensive dashboard and reporting tools, finding common ways of doing things, and developing processes to measure savings. It also included a plan to consolidate the portfolio of carrier partners.
The Solution
Looking back over two-plus years, Marmon has driven a 21% reduction in freight spend—exceeding initial expectations.
The challenge of bringing diverse and independent businesses together was not easy. Companies can be resistant to change, and that concern magnified when it came to switching transportation providers.
“Knowing change can be hard, we took things slow,” adds Jones. “These types of transitions are stressful, and we did not want to put undue risk on the businesses’ ability to operate. We also knew communication was key. The last few years have been hard on supply chains and we didn’t want to add to that burden.”
Equally important was an effort to identify managed logistics partners they felt were up to the task. For this, Jones looked to Echo, a partner already supporting a few Marmon businesses.
“Echo’s understanding of the Marmon organization was vital to this program’s success. There was a lot at stake and naturally, some hesitancy. So, knowing we’d get Echo’s full support and a well-planned implementation went a long way. As we talked to other 3PLs, we realized many simply didn’t appreciate the full amount of work that would be needed to succeed,” says Jones.
Marmon has brought more than 50 of its businesses into the program with Echo. And because its business is so dynamic, with new acquisitions and frequent change, there will likely be more.
“As we sit today, the program has been a success. Aside from the savings, we take pride in the fact 99% of the companies brought into this program would say it’s working. Echo has grown to be one of Marmon’s largest suppliers and we are grateful for the successful partnership,” concludes Jones.
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